Under what conditions can Alloy immediately terminate the Development Agreement?

According to Alloy's 2025 Franchise Disclosure Document, Alloy has the right to immediately terminate the Development Agreement if the developer fails to either execute a Franchise Agreement or to open a facility according to the dates set forth in the agreement. This also applies if the developer otherwise fails to comply with the Development Schedule.

This means that a prospective Alloy developer must adhere strictly to the Development Schedule outlined in their agreement. The Development Schedule dictates the dates by which the developer must enter into Franchise Agreements and the dates by which they must open facilities. Failure to meet these deadlines gives Alloy the right to terminate the agreement immediately.

This provision underscores the importance of careful planning and execution on the part of the developer. Before signing a Development Agreement with Alloy, prospective developers should carefully review the Development Schedule and assess their ability to meet its requirements. They should also consider potential challenges, such as securing suitable locations, obtaining financing, and completing construction, and factor these into their timeline. Failure to meet the schedule, even due to unforeseen circumstances, could result in the termination of the agreement and the loss of development rights.